Tycoon Robert Tchenguiz faces further investment pain

Tycoon Robert Tchenguiz, whose fortune has been severely eroded by a string of bad investments, is bracing himself for fresh misery.

His Globe pub chain is dangerously close to breaching key banking agreements as it struggles to cover the interest payments on £254million of bank debts and £250million in bonds.

The group of 424 tenanted pubs is jointly owned by Scottish & Newcastle, which has a 30-year contract to operate them.

Publicans have been hit hard by the smoking ban, increased taxes and cash-strapped consumers opting to stay at home with cheap supermarket booze rather spend time down the local.

Globe's situation has been exacerbated by friction between the two owners over how the group is run. Hostilities and trading have become so bad that an independent consultant, thought to be Citigroup, has been drafted in to perform an emergency review of the business.

One City source claimed that the nub of the problem lies with S&N, which is owned by Heineken.

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He claims the brewer is only interested in pushing its own beers through the chain, which is a turn-off for customers who demand a full choice of lagers and bitters.

'S&N's priority is to try to sell its beer through the pubs,' said the source. 'The question is whether this impacts on sales. If people want choice and they can't find Carlsberg for instance, then they are likely to choose other pubs.'

The extent of Globe's financial problems was revealed in its latest financial update. In figures for the three months to November the pub chain revealed underlying beer sales had dropped 8 per cent.

This prompted a 20 per cent fall in operating profits to £5.3million - to a point where they only barely cover interest payments.

The firm said that 'in the testing market conditions currently being experienced, the directors are working closely with Scottish & Newcastle to maximise profitability of the estate'.

Small pubs of the type owned by Globe have been the worst affected in the downturn. Globe is not alone in finding life a struggle.

Larger rivals Punch and Mitchells & Butlers have both been grappling with huge debts racked up making acquisitions at the top of the market.

For Tchenguiz, meanwhile, Globe's troubles are the latest in a series of serious financial blows that have seen the value of some of his investments decimated.

In March his Laurel Pub chain fell into administration, then he sustained heavy losses in Mitchells & Butlers and Sainsbury when he was forced to offload his investments.